Singapore
Why Invest in Property?
Property is an appreciating asset. Property as an asset class has appreciated in Asia, on average property prices double every 7-10 years.
The Singapore Property
Market Over the last 10 years, the property market in the Singapore has been buoyant with unprecedented growth rates around the country. Due to this reason, many people have started to invest in property as a way to financially secure their future and supplement their existing pension plans. Investing in property is probably the largest financial decision made by individuals, but also one of the most rewarding.
Property correction, but not a crash
The trend in property prices has been consistent over the last 30 years or so. That is to say, prices have trended up wards in peaks and troughs. This is important, because the property market graph is showing consistent higher highs AND higher lows. What this means is when prices have fallen from the peak in the 1990's to the lows around 1992, the lows here have been higher than the previous lows around 1983.
This pattern shows an underlying strength in property prices, where the fall in prices cannot be interpreted as a crash but a correction before the prices move higher.
Investing in the property market and building a residential property portfolio shouldn't be daunting. The rental market continues to be buoyant whilst the availability of specialised buy to let mortgages has never been greater.
Real estate markets tend to fluctuate between undervaluation and overvaluation. What is 'high' for a market, and what is 'low' is largely a matter of history, and of comparison with other assets.
Over-valued property markets are extremely seductive. There are often good reasons to believe that a particular market deserves higher valuations than it did in the past, or than other markets deserve.
Harnessing the growth of property, with sensible risk management and a good long term strategy is what Quillion provides to all clients interested in property investment. This way, we are able to build a safe and secure property portfolio.
